Government Contracting - Term Contracts - ONVIA & Jennifer Schaus

“Build Your Pipeline With Government Term Contracts” Presented By:

Jennifer L. Schaus In Collaboration With:

ONVIA May 2, 2012

AGENDA Welcome & Introductions Background Onvia Jennifer Schaus Term Contracts What are they?

How is government using them?

How does agency leadership affect them?

How can you find more?

Winning Bid Strategies Conclusions – Q & A

BACKGROUND: ONVIA Leading provider of B2G intel/data RFP Notifications – Fed, State, Local

BACKGROUND: JENNIFER SCHAUS Over 15 years Federal procurement & sales experience; Offices in Washington, DC and Rome, Italy Contributed government purchasing expertise to: Wall Street Journal / Washington Post / Washington Business Journal / Government Product News NCMA (National Contract Management Assoc) / AMEX – WIPP (Women Impacting Public Policy) / NDIA – WID (Women In Defense) / Various foreign embassy delegations.

BACKGROUND: JENNIFER SCHAUS Dun & Bradstreet – FED GOV Sales GSA Schedule & FED GOV Sales / Business Development Jennifer Schaus & Associates * Washington, DC – Rome, Italy * Small, Mid, Large, Fortune 500 Clients * Product & Services – Domestic & International Clients * GSA Schedules * B2G Sales / Marketing – FED, STATE & LOCAL * Related Services: 8a, Proposal Writing, Lobbying, etc.

TERM CONTRACTS: What Are They? Definition A term contract is a contract in which a source or sources of supply are established for a specific period of time at a predetermined unit price.

-----------------------------------------------------------------------Sources of Supply can include both products and services.

Specific Period usually is no less than one year and no more than 10 years.

Predetermined Unit Price are usually established and negotiated between the seller (vendor) and buyer (government).

TERM CONTRACTS: What Are They? Explanation Term Contracts tend to be “multiple award� (MAS); Multiple Vendors can be listed on the Term Contract; Many times, there is no guarantee of sales; Competition still exists.

Creates a designated & vetted pool for the buyer to select from.

Some have set date enrollment periods (typically State / Local) Others are open enrollment (ie. Federal GSA Schedule)

TERM CONTRACTS: What Are They? Examples Federal Government: GSA Schedule VA Schedule Army FIRST Navy NAV SEAPORTe FAA eFAST

State & Local Government: CMAS – California Multiple Award Schedule TXMAS – Texas Multiple Award Schedule MHEC - Midwest Higher Education Consortium WSCA – Western States Contracting Alliance

TERM CONTRACTS: What Are They? Advantages Can be a competitive advantage (FOR VENDORS) to keep out similar firms who do not have; Bidding opps designated for contract holders (EX: GSA E-Buy) Facilitates the buying process for the government; Paperwork has been completed on the front-end; Less risky and less work for the buyer/CO; Company is “approved”; Budget dollars are allocated for these purchases; Vendor has complied with established T’s & C’s in the contract upfront.

TERM CONTRACTS: How is government using term contracts?

Government uses term contracts to simplify purchases; Vetting has been done upfront; Capabilities have been established & checked; Fair & Reasonable pricing has been negotiated & set; Facilitates purchasing process for the buyer.

TERM CONTRACTS: How does agency leadership affect term contracts?

What affects agency leadership?

Scandals Election Year – Political Changes Outside Events – 9/11 ; Financial Crisis ; etc.

Creation of Agency (DHS) Department Of Homeland Security

Dissolve Agency or Department Bureau of Ocean Energy Management, Regulation & Enforcement (BOEMRE), formerly Minerals Management Service (MMS), was replaced by Bureau of Ocean Energy Management (BOEM) & Bureau of Safety & Environmental Enforcement (BSEE).

TERM CONTRACTS: CONTRACTS How does agency leadership affect term contracts?

Directives from agency leadership to utilize (or not) specific contracts.

Agency Specific Contracts: Army FIRST Navy NAV SEAPORTe DHS Eagle Vendor-Ready Contracts for Disaster Recovery & ARRA Programs GSA Schedule sub-sets Terms & Conditions will vary that vendor “accepts”

TERM CONTRACTS: How can you find more?

More = Not always better Are term contracts right for you?

How does your customer buy?

What are your margins with term contracts?

Do you have “wiggle room� for bidding?

What are repercussions after accepting term contracts?

If term contracts are a good fit for your B2G strategy consider: Obtain one that is used the most for your offering; Obtain one that can be replicated/grandfathered in (GSA)

TERM CONTRACTS: How can you find more?

More term contracts = More bidding opportunities with a smaller playing field of competitors More bidding opportunities = More chances to win and grow business More chances to win and grow business = More revenue for your company CONSIDERATION: Profit Margins – Negotiate rates that you can live with- and survive / thrive on!

TERM CONTRACTS: Winning Bid Strategies - NEGOTIATING Term Contracts Negotiate upfront rates that leave you room to bid lower (if this is part of the terms & conditions) Negotiate rates that allow you to still be profitable (Otherwise this market is not for you & you will be buying contracts) Negotiate rates that are competitive with your industry leaders

TERM CONTRACTS: Winning Bid Strategies – POST Term Contracts Ensure you understand and comply with all of the Terms / Conditions; This is important both pre and post award.

Build relationships with your buyers for repeat business; Incumbents who perform well and “play well with others” tend to continue winning.

Build relationships with your Contract Administrators – They can make your B2G business miserable or pleasant.

TERM CONTRACTS: Winning Bid Strategies – POST Term Contracts Ensure you are receiving the e-bidding opportunities; Many companies go through the tedious process & forget this step!

Understand your limitations on set price and options for bid price.

T’s and C’s will vary by contract.

Stay on top of the renewal to ensure no lapse or non-compliance; Renewals tend to be easier than starting from scratch.

If you are overwhelmed, consider an outside expert to manage the process & Reporting requirements.

THANK YOU !

Ms. Jennifer L. Schaus +1–202–365–0598 JSchaus@JenniferSchaus.com * GSA Schedules * Contact Maintenance / Management * B2G Sales / Marketing / Lobbying * Proposal Writing * 8a Certification * Social Media Services (B2G and B2B) * B2G Networking – Monthly: Wash, DC